Labour Disputes In China – What You Need To Know

Labour disputes can be extremely costly for companies. Whilst robust employee handbooks, policies and procedures can reduce employee disputes, workplace conflicts can still arise. If left unchecked, companies can face not only legal liabilities but also internal operational disruptions, decreased morale and productivity, as well as possible external reputation damages.

Under the Labour Law of the People's Republic of China ('Labour Labour'), employers are required to resolve labour disputes through either mediation or labour arbitration first. Litigation should be the last resort as parties must proceed through labour arbitration before a litigation case can be filed.

Definitions